Now Streaming: Paramount, Comcast explore options for SkyShowtime

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

PLAYING THIS WEEKEND: Among this weekend’s most notable new streaming content is the sixth season of Apple TV’s (AAPL) British spy thriller “Slow Horses”, starring Gary Oldman. Meanwhile, Amazon (AMZN) Prime Video subscribers can catch “Neagley”, a spinoff from action crime series “Reacher”, starring Maria Sten. Netflix (NFLX) has also released “Monster: The Lizzie Borden Story”, the fourth installment in Ryan Murphy and Ian Brennan’s anthology series about infamous killers. Additionally, Peacock (CMCSA) subscribers can watch “The Traitors: New Blood”, the first season of the reality hit featuring ‘everyday Americans’ rather than celebrity contestants.

PARAMOUNT, COMCAST EXPLORE OPTIONS FOR SKYSHOWTIME: Comcast and Paramount Skydance (PSKY) are launching a “review of strategic options” for their European joint venture streaming service SkyShowtime, The Hollywood Reporter’s Alex Weprin reported Monday. The board of the JV informed SkyShowtime CEO Monty Sarhan of the strategic review Monday in a letter. “SkyShowtime operates in one of the most competitive markets in our industry. Despite the excellent work of the team and the strength of what you and the team have built, the landscape continues to evolve rapidly, and remains highly challenging,” the board’s letter stated. “Against that backdrop, SkyShowtime’s shareholders are commencing a review of strategic options for the business, which includes the possibility of a wind down. No decisions have been made, and all options remain under consideration.”

DISNEY, ‘LIKE NASTYA’ SIGN CONTENT DEAL: Disney (DIS) has signed a content development deal with YouTube star ‘Like Nastya’, expanding its kids-content pipeline through a new Disney Jr./Disney+ animated preschool series, additional live-action programming, and a curated library collection, Variety’s Joe Otterson reported Thursday. ‘Like Nastya’ currently operates more than 25 YouTube channels, with more than 450 million subscribers across all of them, Variety noted.

NETFLIX DOWNGRADE: Wells Fargo downgraded Netflix. Wells said the company’s engagement trends “look worrying.” Wells believes Netflix’s originals content slate is weaker in the second half of 2026 versus prior periods. Its base case is the company’s top 100 originals hours will be down 21% year-over-year. Wells cited engagement risk for the downgrade.

Meanwhile, Evercore ISI raised the firm’s price target on Netflix and kept rating on the shares. Recent surveys in the U.S. and Japan demonstrate multi-year highs in penetration rates as Netflix’s positioning is showing signs of strength, the analyst said.

AMAZON, NETFLIX, GOOGLE FORM SACA: Amazon, Netflix, and YouTube (GOOGL) are joining forces through TechNet’s new Streaming Access and Choice Alliance to advocate for consumer access to online content and greater choice in streaming services, The Wall Street Journal’s Elias Schisgall reported Monday. The new coalition will be led by TechNet Senior Vice President of Federal Policy and Government Relations Mike Ward. “Americans want more content choices and flexibility in how and where they watch their favorite programming, including sports and other live events,” Ward said. “The industry and its customers deserve a dedicated voice in Washington, D.C., advocating for policies that enable innovation and address the needs of today’s consumers.”

PARAMOUNT SKYDANCE INITATIONS: Citizens initiated coverage of Paramount Skydance. Citizens expects the company’s deal with Warner Bros. (WBD) will close, and that the combined business will possess one of the most expansive libraries of high-quality IP and content in entertainment, the analyst said. There is a credible path to management’s financial and leverage targets through achievable underlying growth and $6B+ of cost synergies, the firm added.

Barclays reinstated coverage of Paramount Skydance. The Paramount-Warner merger can create “growth optionality” in streaming and studios, but executing on this while being “straitjacketed by synergy and deleveraging goals is likely to be difficult,” the analyst said. The firm believes further asset restructuring may be inevitable over time. Barclays also reinstated coverage of Warner Bros. Discovery.

FOX INITIATION: Citizens also initiated coverage of Fox Corp. (FOXA). Citizens said Fox is well positioned in the industry and that Fox’s differentiated focus on must-watch live sports and news has largely insulated it from the costly scripted-content streaming wars, while supporting durable engagement, premium monetization, and strong distributor leverage, the analyst said.

STOCK PLAYS: Other publicly traded companies in the streaming space include Roku (ROKU), AMC Networks (AMCX) and FuboTV (FUBO).